South West Airlines

Question: Discuss the assumptions and impacts of the most plausible scenario on Southwest airlines Target markets. Unique customer value proposition/s. Distinctive value chain. Answer: Introduction: Southwest is basically the United States comparative low fare airline, which services short-haul and city pairs, and just provide single air class transportation to the passengers, who target the business traveller and the leisure travellers. Southwest has got one almost the best Customer Service overall records, which is one of the cheapest operating cost effective structures and also for so many past continuous years offers simplest fares in the airline industry for domestic rides. Southwest airlines have been the winner for the famous Triple Crown for continuous five years in a row, i.e. 1992 - 1996. The Triple Crown basically consists of the best baggage controlling and handling, with almost negligible and very few customer grievances and complaints and perfect record for best on-time reaching performance among the competitors of all major airlines. For almost even more than 40 years, this airline has been a continuous motivator, and a great innovator, with its very competitive a nd low operating costs, its presence and unique dominance at almost all the smaller airports in the US and its excellent, humorous and outstanding customer service (Diaconu Maxim, 2012). Target market for the Southwest airlines: Southwest Airlines targeted the medium to high class frequency business clients and travellers who take just two to three round-trips and not more than that per month, male or female who are professionals between the age group of 24 - 55, such travellers who are very cost conscious, dissatisfied clients from the full-service airlines. Clients looking to cover distances from range of 750 to 1,700 miles, some leisure, family client travellers, internet savvy clients, and other 30 - 60 days trip travel planners etc. formed part of travellers who were travelling the southwest airlines (Miles and Mangold, 2005). The airlines has always been very polite and supportive to the customers who travel through it, each time the hospitality level, which the clients experienced increased and the customers became the permanent clients of the southwest airlines. Southwest always felt very proud in itself to have a "no change fee" if it concerns the reservations, and had ruled to allow just the first and at the last second bag to fly free with the travellers, and had a unique idea to welcome pets on-board. Their very attractive business model which believes in "Keeping it Simple" consisted of no distinction of the seating class whatsoever, no such thing as the on-board meals, and a very simple structure for the ticket pricings. Southwest has always had the on time best performance all across the concerned field, and also the customer ratings for this has been at the top always (Murakami, 2013). Unique customer value proposition of the southwest airlines: The Value proposition is among the most important steps or the aspects of any strategy of any company. It has always been the most significant key elements of any companys strategic triangle. One can easily find out that the South West has a very differentiated and unique value proposition in comparison to both cars as well as the traditional airlines which may also include airlines like the AA/United. Southwest airlines have always been much cheaper and on the other hand also more convenient than the AA or any other airlines which are available in the market, with even more friendly service plus always better on the platform and the results of being on time performance. AA may beat the South West on the proportion of buying factors of the meals, seating arrangement or may be entertained, but on the actual grounds these are far less significant to travellers who prefer economy classes in the airlines. Southwest is differentiated with the car travel as well, but clearly on the different buying of tickets factors the flights of the southwest are definitely much faster, rather travelling by a cab, taxi or car and also often friendly service is rarely found in a car travel (Ng, 2006). Thus, in comparison to the traditional airlines, The South West airlines surely have much value proposition as far as the price, on-time arrival; comfort, convenience and the presidential treatment are concerned. Though the services which were provided by the rich airlines were better than the southwest airlines, but in accordance with this the clients were charged real heavy money, thus clients preferred to travel from the southwest as they travel on those airlines was real price for the money paid by them (Thomas, 2015). Distinctive value chain: The Distinctive Value Chain Management of the southwest airlines states that the coordination of all sequences of all departmental activities is required to be transformed into goods or the services in such a way which is desired as well as liked by the customers. Further a successful value chain management clearly and keenly focuses on efforts to lower input and on the other hand, increasing efficiency along with the innovation as well as the customer focus and last but not the least responsiveness. Most importantly, the central focus of the value chain management is sure and UN doubly the customer responded (van den Briel et al., 2005). If any of the companies do not research about the liking and requirements of the customer and is unable to find out what actually a customer wants, there can be no possible way to improve the short come if any. Competition is so acute in each and every business that, it just takes one bad experience which may take away even the most loyal and fixed customers away from that company. If the company does nothing to put efforts on such things which may make the trips happier for the customer, sooner or later the concerned company is sure to get closed. In todays world, a companys ultimate and best marketing weapon or the tool isjust simple word of mouth from a client (Thomas, 2015). With all of the present platforms that are available to clients online and also through the social media channel, a company is also required to procure clients by providing outstandinghospitality servicesto them or the client shall open themselves to virtual billboards which includes poor publicity and also the marketing. References Diaconu Maxim, L. (2012). The Development of the Low-Cost Carriers Business Models. Southwest Airlines Case Study.Annals of the Alexandru Ioan Cuza University - Economics, 59(1). Miles, S. and Mangold, W. (2005). Positioning Southwest Airlines through employee branding.Business Horizons, 48(6), pp.535-545. Murakami, H. (2013). Dynamic Effect of Low-Cost Entry on the Conduct Parameter: An Early-Stage Analysis of Southwest Airlines and America West Airlines.ME, 04(04), pp.281-292. Ng, C. (2006). Emergence of a Market for Southwest Airlines Frequent Flyer Awards.Transportation Research Record: Journal of the Transportation Research Board, 1951, pp.37-43. Thomas, M. (2015). Strategic principles at Southwest Airlines.Strategic Direction, 31(8), pp.10-12. van den Briel, M., Villalobos, J., Hogg, G., Lindemann, T. and Mul, A. (2005). America West Airlines Develops Efficient Boarding Strategies.Interfaces, 35(3), pp.191-201.